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Weightec Division's operating results include: Controllable margin, $150,000 Sales revenue, $1,200,000 Operating assets, $500,000 Weightec is considering a new project with sales of $120,000, expenses
Weightec Division's operating results include:
Controllable margin, $150,000
Sales revenue, $1,200,000
Operating assets, $500,000
Weightec is considering a new project with sales of $120,000, expenses of $84,000, and an investment of $180,000. Weightec's required rate of return is 15%.
Instructions: Should Weightec accept this new project? Fully explain why or why not. Show all workings to justify the answer.
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